Alternative Energy Markets, Energy Price Signals Study: contract awarded
The energy price signals study will explore innovative price signal regimes for policy and network costs for domestic consumers.
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One of the priority areas under the UK government’s Net Zero Innovation Portfolio (NZIP) is energy storage and flexibility. The NZIP Alternative Energy Markets programme is exploring what an alternative system of network and policy price signals might look like, whether those signals could be trialled in a real-world environment, and how to undertake any potential trial.
To facilitate cost-effective decarbonisation, upstream network and policy charges (such as renewable support scheme costs) might be recovered differently in the future, for example in ways that more accurately reflect the system costs and carbon emissions impacts that result from consumer energy choices.
As part of the Alternative Energy Markets programme, BEIS issued an Invitation to Tender in March 2021 for an Energy Price Signals study. The study will explore innovative price signal regimes for policy and network costs for domestic consumers. Its objective is to provide an evidence-based ‘menu’ of options for what an alternative system of network and policy price signals in Great Britain should look like, based on principles consistent with cost-effective decarbonisation.
Following the deadline for bids, a contract has been awarded to CEPA LLP with support from Energy Systems Catapult (ESC).
CEPA is an economics, finance, regulation and competition advisory firm with extensive experience in developing, implementing and evaluating public policy issues in the energy sectors in the UK, Ireland and internationally.
ESC is an independent, not-for-profit centre of excellence that bridges the gap between industry, government, academia and research.
The contract notice provides more information about the study. BEIS held an information event in March to outline and answer questions.
Last updated 5 July 2021 + show all updates
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Contract awarded to CEPA and ESC.
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First published.